Cyprus: Cyprus Residence And Work Permits – Companies With Foreign Interest

Last Updated: 22 August 2018
Article by Shanda Consult Ltd

Cyprus companies with non-EU shareholders that provided a paid-up capital of the company of minimum EUR 171.000 can employ up to 15 non-EU persons in upper and middle management positions, with residence and work permits issued by the Cyprus authorities.
Family members can join by way of family reunification.

The Republic of Cyprus wishes to encourage international businesses to set up their headquarters of regional headquarters in Cyprus or to engage in substantial local businesses.

EU businesses easily relocate to Cyprus or set up business in Cyprus and are free to employ staff from their EU home countries, thanks to the EU Freedom of Movement.

Non-EU businesses may also smoothly set up their business in Cyprus, but staff from their non-EU home companies can normally not be relocated to Cyprus so easily.

Therefore, Cyprus provides for special residence and work permits for non-EU staff of so-called "Companies with Foreign Interest".

What are "Companies with foreign interest"?

Cyprus companies with foreign interest are companies duly incorporated in the Republic of Cyprus, with the majority of shares held by non-EU nationals, representing a paid-up capital of minimum EUR 171.000, which must have been paid to the accounts of the company directly from outside of Cyprus.

Cyprus companies with foreign interest may be 100% owned by non-EU nationals.

Cyprus public companies are excluded from these provisions.

Examples:

  • A Cyprus company which has only non-EU national shareholders and which has a paid-up capital of EUR 200.000, does qualify for the "Company with Foreign Interest" status, because the majority of shareholders (in this case, all shareholders) are non-EU nationals and the paid-up capital is more than the threshold of EUR 171.000.
  • A Cyprus company where the paid-up capital is EUR 320.000 and 55% of its shareholders are non-EU nationals does qualify for the "Company with Foreign Interest" status, because the majority of shareholders (in this case, 55%) is non-EU nationals and the paid-up capital represented by their shares is more than the threshold of EUR 171.000, namely it is EUR 176.000.

If the non-EU shareholder(s) of a Cyprus company is a company or are companies outside the EU, the above-mentioned minimum shareholding and threshold of paid-up capital applies to the beneficial owners.

A Cyprus company with foreign interest must be able to proof that the company operates from suitable premises (offices or industrial premises) that cannot be part of private residences. Co-working places or shared offices are eligible. If the nature of the company's business allows staff to work from their home and an office would not be needed, such cases will be evaluated individually and may enjoy approval.

Before a Cyprus company of foreign interest is allowed to employ non-EU nationals, the company must be approved as a company of foreign interest by the Migration Department.

What category of non-EU staff is entitled to receive Cyprus residence and work permits in this context?

Based on the special provisions for Cyprus companies with foreign interest, the following categories of staff are entitled to receive Cyprus residence and work permits:

Upper management staff:

  • Directors or shareholders registered as such in the Registrar of Companies;
  • General managers of branches and of mother companies of non-EU companies;
  • Department Managers;
  • Maximum 5 non-EU nationals can be granted a residence and work permit under this category.

Middle management staff:

  • Executive directors, other than the directors mentioned above;
  • Non-executive directors;
  • Other managerial staff;
  • Clerical and technical personnel.
  • Maximum 10 non-EU nationals can be granted a residence and work permit under this category.

Supporting staff

  • For staff that does not fall under the above two categories the company with foreign interest is expected to employ Cypriots or EU nationals.
  • Exemptions may apply if comparable Cypriot and EU staff is not available on the labour market and the Labour Office approved employment of non-EU staff. In this case, residence and work permit will be granted to non-EU national staff of companies with foreign interest.

Please contact us for details, if you are interested.

Which conditions apply for the granting of residence and work permits for non-EU nationals as staff of Cyprus companies with foreign interest?

For upper management staff:

  • Minimum monthly salary of gross EUR 3.872,00.

For middle management staff:

  • Minimum monthly salary of gross EUR 1.936,00.

For staff of any of the categories, mainly:

  • Clean criminal record certificate from the home country of the staff member, officially translated to English, if not issued in English;
  • Various original medical certificates (tuberculosis, hepatitis B and C, HIV/AIDS, syphilis), confirming that the person is clean of said illnesses;
  • Bank guarantee in favour of the Migration Department (EUR 340,00 for Middle East nationals, EUR 550,00 for East European nationals, EUR 855,00 for nationals from Asia and the Americas);
  • Secured Cyprus entry permit for the first entry to Cyprus;
  • Employment contract.

After the above conditions are met, an application may be filed with the Migration Department for the first temporary residence and work permit. This application must be filed within 7 days from the arrival of the non-EU national in Cyprus.

Residence and work permits are issued as per the employment contract's term, but max. for 2 years, with the right to renew the permit. Staff of the upper and the middle management as described above may reside in Cyprus without a time limit, as long as they possess a valid residence and work permit.

Family members

Staff of the upper and the middle management as described above with a valid residence and work permit may exercise their right of family reunification. In such a case, non-EU nationals who are family members (spouse and minor children) can enter and reside in Cyprus after the staff member has followed the procedure for family reunification.

For family members (spouse and dependent children) who temporarily do not qualify for family reunification (e.g. because of the duration of the passport or the duration of the marriage), temporary residence permits of Dependent Visitor may be issued. These family members can enter via a visa and then apply to the Department for obtaining a temporary residence permit.

Summary of procedure for Cyprus residence and work permit for companies with foreign interest

Below is a brief summary of the necessary steps to be followed. Each step below includes certain details that need to be regarded.

Please do not hesitate to contact us for detailed consulting. Apart from our consulting, we will be happy to assist and to carry out all below steps, from company incorporation, assisting in finding and fixing an office, preparing, submitting and following up all necessary applications until approvals are obtained, and more.

  • Incorporate a company in Cyprus with a minimum of EUR 171.000 authorised capital that represents the majority of the company's shares.
  • Open a bank account for the company and pay the required capital to the company.
  • Apply for and receive the company of foreign interest status for the company.
  • Apply for and receive Cyprus entry permit for the first entry of staff under these provisions.
  • Apply for and receive residence and work permit.
  • Apply for and receive permits for family reunification.

Related information:

Shanda Consult is experienced in services regarding setup, localisation and relocation of businesses and staff members.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions